advisoryboard
advisoryboard replied to the topic I heard that my organization will have to pay unrelated business income tax and file an unrelated business income tax return on any transportation benefits that they give to our employees. Is this true? in the forum Ask a question! Create an account to begin by clicking Join 6 years, 1 month ago
The new tax law referred to as the Tax Cuts and Jobs Act (TCJA) made substantial changes to business deductions for expenditures viewed to be inherently personal in nature. One of those changes has to do with deductions for qualified transportation fringe benefit (QTFB) expenses such as pre-tax transit checks. If a Not-For-Profit organization…[Read more]
advisoryboard replied to the topic We received a foundation grant in the amount of 1 million dollars that covers three years of activities for one of our programs. Our auditor says that we have to record the entire amount in the current year. This doesn’t make sense. Why do we have to record the whole amount in the current year? Shouldn’t we record 1/3 of the grant in each of the three years? in the forum Ask a question! Create an account to begin by clicking Join 6 years, 1 month ago
Your auditor is correct if the grant has the following elements:
1. The grant is a unrestricted (i.e. without donor restrictions)
2. There are no conditions that have to first be met in order to receive the grant
3. The grant is not an expense reimbursement grantIf everything above applies then you record 1/3 of the grant in the current year…[Read more]
advisoryboard replied to the topic I know there are new financial statement reporting rules that Nonprofits have to follow. When or what year do those new rules take effect? in the forum Ask a question! Create an account to begin by clicking Join 6 years, 1 month ago
The Financial Accounting Standards Board (FASB), which is the accounting rule making body, issued an accounting standards update (ASU 2014-16) entitled “Not-For-Profit Entities: Presentation of Financial Statements of Not-For-Profits Entities”. This update details all the changes to NFP financial statements. The new rules take effect for years…[Read more]
advisoryboard replied to the topic What information must be put in a receipt to donors who give cash donations? in the forum Ask a question! Create an account to begin by clicking Join 6 years, 1 month ago
It depends on what type of donation the donor is giving. In accordance with IRS regulations, if someone makes a cash donation and the amount is $250 or more then the organization must provide a written receipt to the donor that states the following:
1. The name of the organization and the date the donation was received
2. The amount of the cash…[Read more]
